Page 40 - November 2023 Issue.indd

Can You Make Once you’ve established a gift budget and are comfortable

with the groups you choose to support, you might turn your
Charitable Giving thoughts to another key issue connected with charitable

Less ‘Taxing’? giving: tax benefits. A few years ago, changes in the tax laws
resulted in a large increase in the standard deduction, which
Submitted by Ann Jacobs, Financial meant that many taxpayers found it more favorable not to
Advisor, Edward Jones - Denton itemize — and lost the ability to take charitable deductions.

410-479-0271 But if you still do itemize, your charitable gifts or contribu-
tions to tax-exempt groups — those that qualify as 501(c)
Once again, it’s the season of generosity. In addition to consid-
(3) organizations — can generally be deducted, up to 60% of

ering gifts for your loved ones, you might want to think about
your adjusted gross income, although lower limits may apply,

charitable gifts as well. But what should you know before depending on the nature of your gift and the organization to

making gifts to charities? And what impact might these gift s
which you’re contributing.
have on your financial and tax situation?

Other, more long-term avenues also exist that combine chari-

First, you may want to create a gift budget by deciding just table giving with potential tax benefits. One such possibility

how much you will give to charitable organizations over the
is a donor-advised fund, which allows you to make an irre-
rest of the year.
vocable charitable contribution and receive an immediate tax
Next, look closely at the groups to whom you wish to contrib- deduction. You can give cash, but if you donate appreciated
assets, such as stocks, your tax deduction would be the fair

ute. You can find many reputable charities, but some others
market value of the assets, up to 30% of your adjusted gross
may be less worthy of your support. One of the red flags of a

income. Plus, you would not incur the capital gains tax that
questionable organization is the amount of money it spends
on administrative costs versus the amount that goes to its would otherwise be due upon the sale of these assets. Once
you establish a donor-advised fund, you have the fl exibility
stated purpose. You can check on the spending patterns
to make charitable gifts over time, and you can contribute to

of charitable groups, and find other valuable information

about them, on the well-regarded Charity Navigator website the fund as often as you like.
(charitynavigator.org).
Another possible tax benefit from making charitable contri-

butions could arrive when you start taking required mini-
mum distributions, or RMDs, from some of your retirement
> edwardjones.com | Member SIPC accounts, such as your traditional IRA and 401(k). Th ese
RMDs could be sizable — and distributions are counted
as taxable income. But by taking what’s called a qualifi ed
Compare our CD Rates
charitable distribution (QCD), you can move money from a
Bank-issued, FDIC-insured
traditional or Roth IRA to a qualified charitable organization,

. % APY* Minimum deposit possibly satisfying your RMD, which then may be excluded
ZFBS from your taxable income. You must start taking RMDs at
$1000
$1000
-ZFBS . % APY* Minimum deposit 73 but you can begin making QCDs of up to $100,000 per
year as early as age 70½. (This amount will be indexed for

$1000
-year . % APY* Minimum deposit infl ation aft er 2023.)
Call or visit your local financial advisor today. Establishing a donor-advised fund and making qualified
charitable distributions are significant moves, so you’ll need

Ann M Jacobs, AAMS®

Financial Advisor to consult with your tax advisor first. But if they’re appropriate
105 Franklin St for your situation, they may help you expand your ability to
Denton, MD 21629-1207
410-479-0271 support the charitable groups whose work you admire.

This article was written by Edward Jones for use by your local
* Annual Percentage Yield (APY) effective 10/19/2023. CDs offered by Edward Jones are bank Edward Jones Financial Advisor. Edward Jones, Member SIPC

issued and FDIC-insured up to $250,000 (principal and interest accrued but not yet paid) per
depositor, per insured depository institution, for each account ownership category. Please

visit www.fdic.gov or contact your financial advisor for additional information. Subject to
availability and price change. CD values are subject to interest rate risk such that when
interest rates rise, the prices of CDs can decrease. If CDs are sold prior to maturity, the
investor can lose principal value. FDIC insurance does not cover losses in market value. Early
withdrawal may not be permitted. Yields quoted are net of all commissions. CDs require
the distribution of interest and do not allow interest to compound. CDs off ered through
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FDI-1867K-A © 2022 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED.
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